GS1 ESSENTIAL TO ECOMMERCE
May 8, 2019
Online resources and purchasing frequency in the away-from-home market are growing exponentially – causing seismic shifts in the way consumers, operators, manufacturers and distributors conduct business. As digital capabilities continue to permeate our industry, today’s foodservice manufacturer has more tools through which to reach, inform and attract customers. An often-overlooked manufacturer resource that informs the operator path to purchase is comprehensive and compelling GS1 data.
The Informed Buyer
From an operator perspective, today’s consumers and patrons are more informed than ever. Menu transparency has been at the forefront of the industry for the last few years. In 2016, Technomic’s Healthy Eating Consumer Trend Report found that 86% of consumers were calling for menu transparency. Their demand to know everything about each menu option – from what’s in it, to where it came from and how it was prepared – has not waned. This has placed pressure on the operator to shop with these questions in mind and only purchase products that provide adequate answers.
When making a purchasing decision, 79% of operators rely on their own personal research.1 In conducting this research, operators are seeking out photos, nutritionals, ingredients, sourcing/origin information, allergens, and how a product was produced. At the most recent IFMA Presidents Conference, a regional chain operator with 22 locations in the southwest shared the same sentiment regarding online product information and said, “If it doesn’t have a photo or nutritionals, I won’t order it.” Complying with GS1 standards ensures that manufacturers are easily discoverable and provide consistent information – therefore giving them an advantage over competitors who do not.
Today’s Buying Process
When operators select a partner to source their products, 94% choose to buy from broadline distributors, and broadline distributors command 72% of the share of shipments.2 In this same report, operators revealed that the top reason why they choose to buy from broadline distributors is the ability to place orders online. As more and more operators place their orders online, it’s imperative for foodservice manufactures to have up-to-date GS1 data on all products.
A C&U director and head of culinary at a major university in the southeast recently told us, “GS1 data is fed from US Foods into our CBORD data management system; we know when there is missing or incorrect information. It’s no longer acceptable for the manufacturer to be so lax… and while they may have gotten away with it five years ago, we simply aren’t going to purchase from them if they can’t be disciplined.”
As more and more operators utilize their distributor online portals – from research to purchase – it’s imperative for manufacturers to create best-in-class GS1 content. It helps shape and streamline information, ensuring all parties speak a common language for stronger communication between all trading partners. While embarking on the task of creating GS1 content can often seem overwhelming, we can help. We’ve had the opportunity to help multiple client partners cut through the communication clutter with concise and purposeful content that elevates their brands and products. If you’re interested in exploring GS1 best practices and why they matter, we’d love to discuss them with you.
1 Operator Purchasing Study, FE&S, 2018
2 The Modern Operator, IFMA with Datassential and Kinetic12, 2019
